You borrow $10,000 at 14 percent compound annual interest for four years. The loan is repayable in four equal annual installments payable at the end of each year.

a) What is the annual payment that will completely amortize the loan over four years?

b) Of each equal payment, what is

i) the amount of interest?

ii) the amount of loan principal?

Answer rating: 100% (QA)

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